2019 (9) TMI 1291

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.... revisionary powers u/s 263 of the Income Tax Act, 1961. The revision is ordered tentatively in the conspicuous absence of either an error or prejudice and merely on the erroneous basis that necessary enquiries have not been made. The order being ab initio illegal and void must be quashed." 3. Briefly stated the facts of the case shows that assessee is an individual, who filed her return of income on 18.09.2014 declaring net taxable income of Rs. 584020/-. The return of income was selected for scrutiny through CASS with reason "low net profit or loss‟. Subsequently, the assessment u/s 143(3) of the Act passed on 27.12.2016 at returned income holding that the assessee is engaged in trading in gold bars under the name & Style of M/s. ....

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....quiry with respect to the unsecured loans. With respect to the difference between the party wise sales and purchase amount and its reflection in profit and loss account, shows that the difference of Rs. 9183981/- in sales and Rs. 8719753/- in purchase. Thus, no enquiry was made by the ld AO on this issue. Consequently, it was held that the assessment order passed on 27.12.2016 is erroneous and prejudicial to the interest of revenue. 6. Before us the ld AR submitted that the ld AO has made a detailed enquiry with respect to the unsecured loan from Mr. Jagjit Singh. He referred to page No. 8 of the paper book which is a letter dated 18.11.2016, wherein, copy of the confirmation along with bank account was furnished. He submitted that primary....

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.... ld Pr CIT by submitting the gist of various decisions. 8. We have carefully considered the rival contentions and also perused the orders of the ld AO and Pr. CIT. According to the provisions of section 263 of the Act, after examination of records, the ld CIT finds that the order is erroneous and prejudicial to the interest of the revenue, then, he has power to revise such orders. Explanation 2 to that section has been inserted w.e.f 01.06.2015 of Finance Act 2015, wherein, in clause (a) it is provided that if an order is passed without making enquiry or verification which should been made, the order passed by the ld AO shall be deemed to be erroneous insofar as it is prejudicial to the interest of the revenue. In the present case the asse....